Senate committee substitute to the 2nd edition makes the following changes.

Part I.

Limits the Teachers and State Employees’ Retirement System (TSERS) Board of Trustees (Board) discretion to make a final decision accepting a charter school application for participation in TSERS upon receipt of the audit report required under GS 135-5.3 (optional participation for charter schools owned by private nonprofit corporations or municipalities) to those instances when a charter school applied for entry within two years of the charter school’s effective date of entry. Specifies that any charter school approved by the Board contingent upon receiving the described audit report must continue its period of provisional entry for up to one year or until the Board has denied its application for entry into TSERS, whichever is earlier. Provides that the charter school will cease participation in TSERS the first of the month following either of these two occurrences.

Part VII.

Expands the circumstances under GS 135-7(h) (TSERS) and GS 128-29(g) (the Local Government Employees Retirement System-LGERS) under which each retirement system’s board of trustees may direct the described contributions to fund the Legislative Enactment Implementation Arrangement (LEIA) to include if the board identifies a specific administrative or information technology purpose that is necessary to prevent an interruption to the described retirement system’s normal operation. Makes conforming changes.

Authorizes the Board to delegate its power to review a charter school’s application for participation in TSERS to the State Treasurer under GS 135-48.54. Further permits the Board to require that the board of directors of charter schools applying for participation in TSERS to file their applications with the person or entity designated by the State Treasurer. Makes conforming change to GS 135-48.30(a) (powers and duties of the State Treasurer).